The ride for the world’s leading cryptocurrency bitcoin has been a pretty exciting one over the past few weeks. At the start of April, bitcoin was seen lying in the lower $4,000s while remaining largely inactive for months until it flipped its bearish mode into a bullish one suddenly. Gaining more than 80% of its price in a matter of a month, the digital asset saw a rise past $8,000 a few days ago until it was dragged down and crashed to an alarming $6,400.
Now, bitcoin is back above the $8k mark standing at around $8,026 at press time, while showing a mammoth %10.75 increase in the past 24 hours. Here’s a look at a probable reason that might have resulted in the crash that took bitcoin below $7,000 recently, manipulation.
— Ryan_W (@RyanICNN) May 19, 2019
It is speculated that the crash of bitcoin’s price just seen was a result of a big whale dumping a lot of bitcoins into the circulation for a large scale sale. As Luxembourg-based Bitstamp exchange saw a large-scale volume sale, panic selling resulted in bitcoin’s price dropping down overall. Regarding the situation, Simon Peters, an analyst at brokerage eToro, says:
Bitcoin’s blip appears to have been caused by a significant sell order placed on the Bitstamp exchange early [Friday] morning, which triggered selling across other exchanges. Whether this order was a deliberate dump or a fat finger error remains to be seen,
Essentially, bitcoin dropped to a low of $6,400 from the $8k range and then regained its price in a matter of days to come back to its $8k level within a matter of days. The rise back to $8,000 can be attributed to the overall positive sentiment that has been developed around the asset. But the entire show that just happened shows how volatile this space is and why most of the investors that are here in the crypto world somehow just want to make a large amount of money in a very small period of time. With prices going up and down in thousands within a matter of days, the risk associated with bitcoin investment is huge.
One thing that can be noticed from this recent fiasco is that the issue of price manipulation is still there in the bitcoin world. It is one of the prime reasons why an exchange-traded fund (ETF) has not been established by the regulatory body in charge, the United States Securities and Exchange Commission (SEC). Billions of dollars are floating around in the bitcoin blockchain world and its price cannot be allowed to float free at the whims of big whales. If bitcoin is to gain more mainstream adoption in the general public and the institutional community, a cure for the issue of price manipulation needs to be found as soon as possible.
But despite the crash, bitcoin is seemingly back on its bullish curve again. Where is it expected to go from here on? The “crypto twitter” is one of the most crucial aspects of the crypto world as people are always discussing what behavior is expected next. Crypto twitter is also a place rife with staunch crypto and bitcoin proponents who expose the shortcomings associated with fiat and the banking system overall. Here are a few expectations from the crypto twitter community itself;
— Crypto Monkey (@iamcryptomonkey) May 19, 2019
See you next month $10k $BTC its been real!
— Joe (@catchingBTC) May 19, 2019
So all eyes are now focused on bitcoin’s price and speculations have started rising up regarding it. Right now, it is the most crucial moment for the asset as it has just recovered and people are expecting to break the next resistance levels so that surety about the continuation of its bull-run can be made. The hopes of touching $9,000 and $10,000 are there. Crypto enthusiasts are expecting a bull-run like 2017 once again. Only time will tell how far this ride of bitcoin price spike goes. As far as the sentiment is concerned, it is largely positive meaning there are strong chances this trend will continue. But still, bitcoin’s price is merely based on speculation and FOMO. It is uncertain what will happen next moment in this space. Only time will tell.